Judge upholds a Florida law turning over the Gainesville utility to a state-appointed board

A Leon County circuit judge Friday rejected a challenge by the city of Gainesville to a new state law that overhauled control of the Gainesville municipal utility.

Judge Angela Dempsey issued a 29-page ruling granting summary judgment to Gov. Ron DeSantis, Attorney General Ashley Moody and Secretary of State Cord Byrd, who were named as defendants in the case.

The law, approved this spring by DeSantis and the Legislature, created the Gainesville Regional Utilities Authority to direct the utility system, known as Gainesville Regional Utilities.

The city commission has governed the utility, which provides electric, natural gas, telecommunications, water and sewer services.

The law gave DeSantis power to appoint the authority’s board members, though it said the authority will operate as a “unit of city government.”

Among other things, the lawsuit alleged that the law could unconstitutionally violate the terms of already-issued bonds and contracts.

But Dempsey ruled, in part, that DeSantis, Moody and Byrd were not proper defendants and that the city lacked standing to sue them.

“Neither the attorney general, the governor nor the secretary enforce the challenged law,” Dempsey, who held a hearing last week, wrote. “Rather, the authority does.”

She also wrote that the law “does not implicate the governor’s constitutional duties. The governor does not regulate or oversee municipal utilities.”

Under the law, the authority board is supposed to hold its first meeting Wednesday.

DeSantis’ office announced the appointment of three board members this week.

The overhaul emerged this spring after Republican lawmakers repeatedly questioned transfers of money from municipal utilities to bolster city budgets.

Those questions stemmed, at least in part, from many utility customers living outside the boundaries of the cities.

The House considered a bill that would have applied to municipal utilities throughout the state, but lawmakers ultimately passed the narrower measure focused on Gainesville.